Interim report for Q3 2013/14 (1 April - 30 June) · Company announcement no. 13 2013/14 20 August...

Ambu

Company announcement no. 13 2013/14 20 August 2014 Page 1

Interim report for Q3 2013/14 (1 April - 30 June) Organic growth in revenue of 8% and gross margin improved to

51.6%. EBIT increased by 41% to DKK 55m. The outlook for the

year is maintained, and the estimated growth in revenue and EBIT

margin is specified.

“Q3 is the first quarter in which Ambu has owned King Systems for a full 12 months, and against this background, having

realised organic growth of 8% and a solid increase in earnings for the second consecutive quarter is very satisfactory.

The growth is broadly based, but also positively driven, in particular by sales of aScope 3 and other products for the

Anaesthesia segment, which is reporting combined growth of 14%. I am pleased that growth, in combination with the

many initiatives currently being implemented, is now reflected in an improved gross margin and in significantly improved

free cash flows. All in all, the results realised by Ambu in Q3 support the targets set for the company’s long-term value

creation,” says President and CEO Lars Marcher.

• Revenue of DKK 397m was posted for the quarter, corresponding to organic growth of 8% when reported in local

currencies. Year to date, absolute growth of 16% has been realised in Danish kroner, corresponding to revenue of

DKK 1,142m.

• All the regions are contributing to the organic growth. Growth in Europe stood at 4% and is positively impacted by

continued strong growth in aScope 3 sales, but negatively affected by the Emergency Care business area. Growth

in the USA was 5%, continuing the positive trend. The rest of the world has contributed strong growth of 40%.

• Total sales of aScope were up more than 60% compared with Q2. aScope 3 was only launched in the USA at the

end of the quarter, explaining why the effect is so far insignificant.

• The gross margin was 51.6% (48.1%), and year to date 50.3% (49.4%). The improved gross margin can be as-

cribed, among other things, to increasing sales of high-margin products and cost synergies from the integration of

acquired activities.

• EBIT before special items was DKK 55m for the quarter (DKK 39m), while an EBIT margin of 13.9% (10.3%) was

posted. Year to date, EBIT before special items totals DKK 118m (DKK 102m), with an EBIT margin of 10.3%

(10.4%).

Ambu


• Free cash flows before acquisitions were DKK 28m (DKK 10m) for the quarter, and DKK 57m for the first nine

months of the financial year (DKK 24m). Special items are constituted by expenses of DKK 2m (DKK 19m), while the

figure is DKK 10m (DKK 20m) year to date.

• The quarter saw the launch in the USA and in Europe of King Vision aBlade, a new version of Ambu’s video laryn-

goscope for use in operating theatres. The agreed milestone payment of DKK 55m to the seller of King Systems has

been made.

• The full-year outlook is narrowed down to revenue of approx. DKK 1.6bn, based on expected organic growth of

approx. 6-7% as opposed to the 5-7% announced earlier and an EBIT margin of approx. 13% against the previously

announced 12-14%. Free cash flows before acquisitions, special items, milestone payments and earn-outs are ex-

pected to be unchanged at approx. DKK 100-120m, with an NIBD/EBITDA ratio of approx. 2.5.

A conference call is being held today, 20 August 2014, at 11.00 am (CET). To participate, please call the following num-

ber five minutes before the start of the conference: +45 3544 5579. The conference can be followed via

www.ambu.com/webcastQ32014 and is held in English. The presentation can be downloaded directly in the conference

call.

Contact

Lars Marcher, President & CEO, tel. +45 5136 2490, email: [email protected]

Ambu A/S

Baltorpbakken 13

DK-2750 Ballerup

Tel. +45 7225 2000

CVR no.: 63 64 49 19

www.ambu.com

About Ambu Since 1937, breakthrough ideas have driven our work to bring efficient healthcare solutions to life within our fields of excellence: Anaesthesia, Patient

Monitoring & Diagnostics and Emergency Care. Millions of patients and healthcare professionals worldwide depend and rely on the functionality and per-

formance of our products. We are dedicated to improving patient safety and determined to advance single-use devices. The manifestations of our efforts

range from early inventions like the Ambu bag and the legendary Blue Sensor® electrodes to our latest landmark solutions such as the aScope™ – the

world’s first single-use videoscope. Our commitment to bringing new ideas and superior service to our customers has made Ambu one of the most recog-

nised medico-technical companies in the world. Our head office is situated in Ballerup near Copenhagen. Ambu has more than 2,350 employees in Europe,

North America, Asia and the Pacific region. You can find more information about Ambu on our website: www.ambu.com.

Ambu


The interim report for Q3 2013/14 and for the period 1 October 2013 to 30 June 2014 has not been audited or reviewed; the accounting policies have been applied consistently with the annual report for 2012/13. The key figures have been calculated in accordance with the Danish Society of Financial Analysts’ ‘Recommendations and Financial Ratios 2010’.

Financial highlights

DKKm

Q3

2013/14

Q3

2012/13

YTD

2013/14

YTD

2012/13

FY

2012/13

Key figures Revenue 397 378 1,142 982 1,383

Profit before interest, tax, depreciation and amortisation

(EBITDA), before special items 78 62 181 154 235

Operating profit (EBIT) before special items 55 39 118 102 161

Operating profit (EBIT) 55 25 118 55 100

Net financials -10 -14 -28 -22 -30

Profit before tax 45 11 90 33 70

Net profit for the period 33 6 66 20 48

Depreciation 11 12 34 32 43

Amortisation 12 11 29 20 31

Assets 1,974 1,935 1,974 1,935 1,875

Equity 701 651 701 651 651

Net interest-bearing debt 784 767 784 767 721

Cash flows from operating activities 53 27 110 65 122

Cash flows from investing activities before acquisitions -25 -17 -53 -41 -54

Free cash flows before acquisitions 28 10 57 24 68

Acquisitions of companies and technology 83 1 108 703 704

Average no. of employees 2,386 2,362 2,347 2,157 1,984

Ratios Gross margin, % 51.6 48.1 50.3 49.4 49.1

Rate of cost, % 38 38 40 39 37

EBITDA margin before special items, % 19.6 16.4 15.8 15.7 17.0

EBIT margin before special items, % 13.9 10.3 10.3 10.4 11.6

Return on equity, % 14 9 14 9 7

NIBD/EBITDA before special items 3.0 3.6 3.0 3.6 3.1

Equity ratio, % 36 34 36 34 35

Investments, % of revenue 6 4 5 4 4

Working capital, % of revenue 27 32 27 32 28

ROIC, % after tax including goodwill 11 10 11 10 10

Share data Market price per share, DKK 397 180 397 180 224

Ambu


Management’s review for Q3 2013/14 and the period 1 October 2013 - 30 June 2014. The quarter saw the realisation of organic growth of 8%

and revenue of DKK 397m, corresponding to a growth

rate of 5% when reported in Danish kroner. Year to

date, organic growth totals 5% with an absolute growth

in Danish kroner of 16%, corresponding to revenue of

DKK 1,142m. The double-digit growth year to date

reflects the fact that King Systems was taken over in

February 2013 and thus was included in Ambu’s finan-

cial statements for only eight months in FY 2012/13.

Revenue – quarters (DKKm)

PRODUCT AREAS Anaesthesia Anaesthesia saw organic growth of 14% in the quarter,

or growth of 11% in Danish kroner, and accounted for

53% of revenue against 50% for the prior-year period.

aScope 3 was launched in the USA in the last half of

Q3, and sales in the USA have therefore not yet signifi-

cantly impacted growth. In the markets where aScope 3

has been launched since the beginning of the year, Q3

saw more than 60% growth compared with Q2. The

construction of the new factory in Malaysia for the pro-

duction of aScope 3 is progressing according to plan,

with expected completion at the beginning of the new

financial year. This will lead to at least a doubling of the

overall capacity.

In Q3, Ambu launched AuraGain, a third-generation

laryngeal mask. Featuring a number of new functionali-

ties not offered by competing products, the mask helps

anaesthetists improve the maintenance of airways

during surgery.

King Vision aBlade, the single-use version of the origi-

nal King Vision video laryngoscope, was launched in

the USA and Europe towards the end of Q3, and Ambu

now offers an intubation solution tailored specifically to

the needs of both hospitals and rescue services.

Patient Monitoring & Diagnostics Patient Monitoring & Diagnostics realised organic

growth of 2%, which is on a par with market growth.

Sales rose by 1% when reported in Danish kroner.

PMD accounted for 39% of revenue in Q3 compared

with 41% in the prior-year period.

Emergency Care

Emergency Care posted revenue of DKK 32m for Q3

against DKK 34m for the prior-year period, representing

organic growth of minus 5%. Emergency Care account-

ed for 8% of total revenue in Q3 compared with 9% in

the prior-year period. Emergency Care sales are largely

based on project sales, resulting in fluctuating growth

from one quarter to the next.

Revenue Q3 – product areas

0

100

200

300

400

500

Q1 Q2 Q3 Q4

2012/13

2013/14

53%39%

8%Anaesthesia

Patient Monitoring &Diagnostics

Emergency Care

(DKKm)

Organic* Currency Reported Organic* Currency Reported**

Anaesthesia 210 190 14% -3% 11% 604 435 11% -3% 39%

PMD 155 154 2% -1% 1% 443 435 4% -2% 2%

Emergency Care 32 34 -5% -1% -6% 95 112 -13% -2% -15%

Revenue 397 378 8% -3% 5% 1,142 982 5% -3% 16%

* Local currencies

** King Systems was included in Ambu’s financial statements for just under eight months in 2012/13

Revenue – product areas

Q3

13/14

Q3

12/13

Composition of growth 9 mths

13/14

9 mths

12/13

Composition of growth

Ambu


MARKETS

Europe Organic growth of 4% was posted for Europe, or 5%

when reported in Danish kroner. The organic growth

thus fell somewhat short of the 11% realised in Q2,

among other things due to lower growth in Patient

Monitoring & Diagnostics and Emergency Care.

Europe accounted for an unchanged 44% of Ambu’s

total revenue for the quarter.

North America

North America realised organic growth of 5%, while

growth reported in Danish kroner was 0% due to the

weakened USD/DKK exchange rate.

North America accounted for 45% of Ambu’s revenue in

Q3 against 47% last year.

The end of Q3 saw the migration of King Systems to

Ambu’s ERP system, which went according to plan.

This marked the last and all-important step towards

realising the expected synergies.

Rest of the world

The organic growth in the rest of the world totalled 40%,

or 35% when reported in Danish kroner. The region

now makes a significant contribution to Ambu’s overall

growth, among other things driven by sales in Australia.

The rest of the world accounts for 11% of revenue

against 9% for the prior-year period.

Revenue Q3 – geographical areas

44%

45%

11%Europe

North America

Rest of the world

(DKKm)

Organic* Currency Reported Organic* Currency Reported**

Europe 174 166 4% 0% 5% 521 494 4% 0% 6%

North America 178 178 5% -5% 0% 501 395 2% -5% 27%

Rest of the world 45 33 40% -4% 35% 120 94 19% -3% 29%

Revenue 397 378 8% -3% 5% 1,142 982 5% -3% 16%

* Local currencies

** King Systems was included in Ambu’s financial statements for just under eight months in 2012/13

Revenue – geographical areas

Q3

13/14

Q3

12/13

Composition of growth 9 mths

13/14

9 mths

12/13

Composition of growth

Ambu


INCOME STATEMENT

(Comparative figures are stated in brackets)

Gross profit

Gross profit for the quarter was DKK 205m (DKK

182m), and the gross margin was 51.6% (48.1%).

The increasing gross margin is primarily attributable to

increased sales of high-margin products such as

aScope and laryngeal masks as well as the continuous

optimisation of production at Ambu’s factories.

A gross profit of DKK 574m (DKK 485m) was realised

for the first nine months of the year, corresponding to a

gross margin of 50.3% (49.4%).

Costs

The total capacity costs were DKK 150m (DKK 143m)

for the quarter. Compared with Q3 2012/13, the rate of

cost was unchanged at 38%.

A rate of cost of 40% was realised for the first nine

months of the year against 39% for the prior-year peri-

od.

The average USD/DKK exchange rate for the quarter

was 544 (570), down just under 5%, which has a posi-

tive impact on capacity costs corresponding to approx.

DKK 5m for the quarter and approx. DKK 15m for the

first nine months of the year, equating to just under 1

percentage point on the rate of cost.

EBIT

EBIT before special items was DKK 55m (DKK 39m) for

Q3, and the EBIT margin was 13.9% (10.3%).

EBIT before special items – quarters (DKKm)

For the first nine months of the year, EBIT before spe-

cial items was DKK 118m (DKK 102m), with an EBIT

margin of 10.3% (10.4%).

Net financials

Net financials amounted to expenses of DKK 10m (DKK

14m) for the quarter, composed as follows:

• Interest expenses for bank and bond debt total

DKK 6m (DKK 7m).

• Foreign currency translation adjustments of work-

ing capital and USD loans to a subsidiary and mar-

ket value adjustment of interest and foreign curren-

cy swaps result in net expenses of DKK 1m (DKK

3m).

• In the quarter, the interest element in the earn-out

provided for in connection with the acquisition of

King Systems is expensed in the amount of DKK

3m (DKK 4m)

Tax

A provision has been made for tax of 26% on the profit

before tax adjusted for non-deductible items.

Net profit

The net profit for Q3 totalled DKK 33m (DKK 6m) and

DKK 66m (DKK 20m) year to date.

BALANCE SHEET At the end of Q3, the balance sheet total amounted to

DKK 1,974m (DKK 1,935m). At the end of Q2, the bal-

ance sheet total amounted to DKK 1,925m.

At the end of Q3, total working capital was DKK 410m,

corresponding to 27% of revenue on a 12-month basis

against 26% at the end of Q2. The increase relative to

Q2 is due to minor changes to the balance sheet as

well as building up inventories due to the launch of new

products.

0

10

20

30

40

50

60

Q1 Q2 Q3 Q4

2012/13

2013/14

Ambu


Working capital relative to revenue* – quarters

Trade receivables were DKK 328m at the end of the

quarter against DKK 311m for the same quarter last

year. The total number of credit days has been reduced

by approx. 10 days. The credit risk attaching to out-

standing debtors is deemed to be unchanged, and the

quarter was not affected by bad debts to any significant

extent.

At the end of June, cash totalled DKK 105m (DKK

77m), in addition to which Ambu had unutilised credit

facilities of DKK 83m.

At the end of the quarter, the total financial net debt

was DKK 784m, of which DKK 700.5m is financed via

corporate bonds. Net interest-bearing debt totalled 3.0 x

EBITDA before special items, which is unchanged.

CASH FLOWS Cash flows from operating activities for the first nine

months of the year totalled DKK 110m (DKK 65m).

This includes DKK 10m (DKK 20m) in the form of spe-

cial items pertaining to the integration of acquired com-

panies. Adjusted for special items, cash flows have thus

been improved by more than 40%.

Cash flows from investing activities before acquisitions

were minus DKK 53m (minus DKK 41m) for the first

nine months of the year, consisting primarily of invest-

ments in research and development and production

plant as well as construction of the new factory in Ma-

laysia.

Free cash flows before acquisitions totalled DKK 57m

(DKK 24m) for the first nine months of the year before

adjustments pertaining to special items of DKK 10m

(DKK 20m), representing an underlying improvement of

50%.

During the first three quarters, acquisitions of enterpris-

es and technology reduced cash flows by a combined

DKK 108m (DKK 703m). Acquisitions of technology

concern the acquisition announced in March 2014 of

patents and rights relating to pain pumps, while compa-

ny acquisitions pertain to milestone payments to the

seller of King Systems as well as investment obligations

in King Systems totalling DKK 97m.

25%

27%

29%

Q1 Q2 Q3 Q4

2012/13

2013/14

* Pro forma adjusted for King Systems

Ambu


OUTLOOK FOR 2013/14

The outlook for 2013/14 is unchanged compared to the outlook announced in the annual report for 2012/13 on 14 No-

vember 2013; however, the estimates for organic growth and EBIT margin have been specified. The outlook is based on

an average USD/DKK exchange rate of 550.

Outlook

Revenue In the region of DKK 1.6bn

Organic growth Of “approx. 6-7%” against the previously

announced “approx. 5-7%”

EBIT margin Of “approx. 13%” against the previously an-

nounced “approx. 12-14%”

Free cash flows Of approx. DKK 100-120m

NIBD/EBITDA Of approx. 2.5

FORWARD-LOOKING STATEMENTS Forward-looking statements, especially such as relate

to future revenue and operating profit, are subject to

risks and uncertainties. Various factors, many of which

are outside Ambu’s control, may cause the actual

development to differ materially from the expectations

contained in this report. Factors that might affect such

expectations include, among others, changes in health

care, in the world economy, in interest rate levels and

in exchange rates.

FINANCIAL CALENDAR

30 September 2014 End of FY 2013/14

13 November 2014

Financial statements for FY 2013/14

17 December 2014 Annual general meeting

Ambu


Management’s statement

On this day, the Board of Directors and the Executive Board have considered and approved the interim report of Am-

bu A/S for the period 1 October 2013 to 30 June 2014.

The interim report is presented in accordance with IAS 34 – Interim Financial Reporting as adopted by the EU and

additional Danish disclosure requirements for the interim reporting of listed companies.

We consider the accounting policies applied to be appropriate, and in our opinion, the interim report provides a true

and fair view of the group’s assets, liabilities and financial standing as at 30 June 2014 as well as of the results of the

group’s activities and cash flows in the period 1 October 2013 - 30 June 2014.

We further consider that the management’s review gives a true and fair view of the development in the group’s activi-

ties and financial affairs, the profit for the period and the group’s financial position as a whole as well as a description

of the most significant risks and uncertainties to which the group is subject.

Ballerup, 20 August 2014

Executive Board

Lars Marcher Michael Højgaard

CEO CFO

Board of Directors

Jens Bager

Chairman Mikael Worning

Vice-Chairman Jesper Funding Andersen

Allan Søgaard Larsen Christian Sagild John Stær

Pernille Bartholdy

Elected by the employees. Anita Krarup

Elected by the employees. Jakob Bønnelykke Kristensen

Elected by the employees.

Ambu


Income statement

DKKm

Q3

2013/14

Q3

2012/13

YTD

2013/14

YTD

2012/13

FY

2012/13

Revenue 397 378 1,142 982 1,383

Production costs -192 -196 -568 -497 -704

Gross profit 205 182 574 485 679

Selling costs -90 -83 -261 -219 -292

Development costs -11 -9 -32 -23 -33

Management and administration -48 -50 -159 -141 -192

Other operating income 0 0 0 3 3

Other operating expenses -1 -1 -4 -3 -4

Operating profit (EBIT) before special items 55 39 118 102 161

Special items 0 -14 0 -47 -61

Operating profit (EBIT) 55 25 118 55 100

Financial income 0 0 8 4 0

Financial expenses -10 -14 -36 -26 -30

Profit before tax (PBT) 45 11 90 33 70

Tax on profit for the period -12 -5 -24 -13 -22


Earnings per share in DKK

Earnings per share (EPS) 2.80 0.56 5.59 1.77 4.05

Diluted earnings per share (EPS-D) 2.73 0.56 5.47 1.76 4.03

Statement of comprehensive income

DKKm

Q3

2013/14

Q3

2012/13

YTD

2013/14

YTD

2012/13

FY

2012/13


Items which are moved to the income statement under

certain conditions:

Translation adjustment in foreign subsidiaries 4 -17 -9 6 -25

Tax on translation adjustments in foreign subsidiaries -1 0 1 0 1

Adjustment to fair value for the period

Disposals included in net financials 0 1 0 1 1

Additions concerning hedging instruments 2 1 2 2 1

Tax on hedging transactions -1 -1 -1 -1 0

Comprehensive income for the period 37 -10 59 28 26

Ambu


Balance sheet

DKKm 30.06.14 30.06.13 30.09.13

Acquired technologies, trademarks and customer relations 103 112 116

Completed development projects 56 45 43

Rights 54 19 18

Goodwill 724 687 730

Development projects in progress 30 45 39

Intangible assets 967 908 946

Land and buildings 110 94 102

Plant and machinery 103 66 113

Other plant, fixtures and fittings, tools and equipment 21 55 29

Prepayments and plant under construction 17 112 8

Property, plant and equipment 251 327 252

Deferred tax asset 32 27 21

Other non-current assets 32 27 21

Total non-current assets 1,250 1,262 1,219

Inventories 240 248 211

Trade receivables 328 311 356

Other receivables 10 7 2

Income tax receivable 6 11 1

Prepayments 17 17 23

Derivative financial instruments 18 2 9

Cash 105 77 54

Total current assets 724 673 656

TOTAL ASSETS 1,974 1,935 1,875

Ambu


Balance sheet

DKKm 30.06.14 30.06.13 30.09.13

Share capital 119 119 119

Share premium 13 9 9

Reserves and retained earnings 569 523 523

Equity 701 651 651

Credit institutions 5 55 56

Provision for deferred tax 35 90 30

Corporate bonds 697 701 697

Other provisions 69 85 83

Non-current liabilities 806 931 866

Current portion of non-current liabilities 4 13 10

Other provisions 60 73 108

Bank debt 183 75 12

Trade payables 73 66 75

Income tax 28 3 22

Other payables 112 116 124

Derivative financial instruments 7 7 7

Current liabilities 467 353 358

Total liabilities 1,273 1,284 1,224

TOTAL EQUITY AND LIABILITIES 1,974 1,935 1,875

Statement of changes in equity

DKKm 30.06.14 30.06.13 30.09.13

Equity as at 1 October 651 665 665

Prior-year errors, see note 3 0 -16 -16

Capital increase, see note 4 4 0 0

Comprehensive income for the period 59 28 26

Exercise of options 15 28 29

Share options 2 3 4

Purchase of treasury shares -15 -22 -22

Distributed dividend -15 -35 -35

Equity 701 651 651

Ambu


Cash flow statement

DKKm Note 30.06.14 30.06.13 30.09.13

Net profit for the period 66 20 48

Adjustment of items with no cash flow effect A 118 100 138

Income tax paid -28 -29 -29

Interest income and similar items 8 0 0

Interest expenses and similar items -36 -6 -7

Change in working capital B -18 -16 -22

Cash flows from provisions 0 -4 -6

Cash flows from operating activities 110 65 122

Purchase of non-current assets -53 -47 -60

Sale of non-current assets 0 6 6

Cash flows from investing activities before acquisitions C -53 -41 -54

Free cash flows before acquisitions 57 24 68

Acquisition of technology -11 0 0

Company acquisitions -97 -703 -704

Cash flows from company acquisitions C -108 -703 -704

Free cash flows after acquisitions -51 -679 -636

Corporate bond issue 0 697 697

Changes in other non-current liabilities -58 41 36

Capital increase 4 0 0

Exercise of options 15 27 29

Purchase of Ambu A/S shares -15 -22 -22

Dividend paid -15 -35 -35

Cash flows from financing activities -69 708 705

Changes in cash and cash equivalents -120 29 69

Cash and cash equivalents, beginning of year 42 -26 -26

Translation adjustment of cash and cash equivalents 0 -1 -1

Cash and cash equivalents at year-end -78 2 42

Note A: Adjustment of items with no cash flow effect

Depreciation and amortisation 63 52 74

Accounting gain from sale of non-current assets 0 0 -3

Transaction costs in connection with company acquisitions 0 10 11

Share-based remuneration 3 3 4

Financial expenses etc. 28 22 30

Tax on profit for the period 24 13 22

118 100 138

Note B: Change in working capital

Changes in inventories -29 18 48

Changes in receivables 23 -14 -72

Changes in trade payables etc. -12 -20 2

-18 -16 -22

Note C: Cash flows from investing activities -161 -744 -758

Ambu


Note 1 – Segment information

Note 2 – Development in balance sheet since 30 September 2013

Note 3 – Prior-period errors

The error affects equity as at 30 September 2013 as follows:

Before tax After tax

Equity as reported at 30 September 2013 667

Correction in respect of 2011/12 and previous years is accounted for in equity -22 -16

Corrected equity as at 30 September 2013 651

Note 4 – Capital increase

Note 5 – Company acquisitions

Note 6 – Risks

For a description of Ambu’s risks, see the “Risks” section in the annual report for 2012/13 on pages 17-18.

Ambu has thus only identified one operating segment and has therefore only shown the activities’ geographical distribution.

Ambu is a supplier of medico-technical products for the global market. Except for the sales of the different products, no structural or

organisational aspects allow for a division of earnings from individual products, as sales channels, customer types and sales

organisations are identical for all important markets. Furthermore, production processes and internal controls and reporting are identical,

which means that with the exception of revenue, everything else is unsegmented.

In connection with the preparation of the interim report for Q2 2013/14, a review of Ambu’s business intelligence system revealed an error in

the calculations on which the valuation of inventories of finished goods is based. The error relates to 2011/12 and has meant that the

intercompany profits calculated across several accounting periods have been too low. This means that the valuation of the inventories of

finished goods has been too high. At the end of FY 2011/12, the error constituted DKK 22m, corresponding to DKK 16m after tax, which

affects the balance sheet as at 30 September 2013.

In the balance sheet, the value of inventories is reduced by DKK 22m as at 30 September 2013, with an adjustment in this respect of the

deferred tax asset of DKK 6m. Key ratios have been restated accordingly.

The interim report for Q2 2013/14 issued on 2 May 2014 reported the completion of the opening balance for the acquisition of King Systems

Corp., which had not given rise to any changes to the opening balance sheet reported in the annual report for 2012/13.

Since the beginning of the financial year, non-current assets have been increased by a net amount of DKK 31m to DKK 1,250m. The figure

includes acquired patent and production rights from Medical Flow Systems Ltd. in the amount of DKK 40m, further investments of DKK 53m

and depreciation and amortisation of DKK 63m.

At the end of Q3, the activities taken over from Medical Flow Systems Ltd. are financed partly via an interest-free loan from the seller in the

amount of DKK 30m, and partly via a cash payment of DKK 11m.

Other provisions under current and non-current liabilities total DKK 129m at the end of Q3 and have been reduced by a net amount of DKK

62m since the beginning of the financial year. The development is driven by the liabilities in respect of Medical Flow Systems Ltd., payments

provided for in respect of King Systems and the earn-out and milestone payments to Consort Medical PLC.

Ambu has carried out a capital increase in connection with the exercise by employees of warrants. Consequently, Ambu’s share capital is

increased by a nominal amounts of DKK 240,000 from DKK 119,080,800 to DKK 119,320,800 through the issue of 24,000 Class B shares

at a price of 160.50. The share capital is now divided into 10,216,080 Class B shares of DKK 10 each and 1,716,000 Class A shares of

DKK 10 each. Following the capital increase and taking account of employees having left the company, 62,500 remaining warrants relating

to the 2011 programme are now held by 21 individuals.

The capital increase will not reduce the previously reported earnings per share (EPS) or diluted earnings per share (EPS-D).

Since the beginning of the financial year, other payables have been reduced by DKK 12m to DKK 112m at the end of Q3. The reduction is

primarily attributable to a change in interest expenses payable in respect of corporate bond financing of DKK 6m.

Ambu


Quarterly results

DKKm

Q3

2013/14

Q2

2013/14

Q1

2013/14

Q4

2012/13

Q3

2012/13

Q2

2012/13

Q1

2012/13

Revenue 397 403 342 401 378 335 269

Organic growth in local currencies 8% 8% -4% 8% 7% 3% 13%

Production costs -192 -209 -167 -207 -196 -172 -129

Gross profit 205 194 175 194 182 163 140

Gross margin 51.6 48.1 51.2 48.4 48.1 48.7 52.0

Selling costs -90 -82 -89 -73 -83 -72 -64

Development costs -11 -9 -12 -10 -9 -8 -6

Management and administration -48 -54 -57 -51 -50 -46 -45

Other operating income 0 0 0 0 0 0 3

Other operating expenses -1 -2 -1 -1 -1 -1 -1

Operating profit (EBIT) before special items 55 47 16 59 39 36 27

EBIT margin before special items 13.9 11.7 4.7 14.7 10.3 10.7 10.0

Special items 0 0 0 -14 -14 -27 -6

Operating profit (EBIT) 55 47 16 45 25 9 21

Financial income 0 8 0 0 0 4 0

Financial expenses -10 -14 -12 -8 -14 -9 -3

Profit before tax (PBT) 45 41 4 37 11 4 18

Tax on profit for the period -12 -11 -1 -9 -5 -1 -7

Net profit for the period 33 30 3 28 6 3 11

Earnings per share

Earnings per share (DKK) 2.80 2.54 0.25 2.28 0.56 0.19 1.02

Diluted earnings per share (DKK) 2.73 2.49 0.25 2.27 0.56 0.19 1.01

Key figures

Rate of cost, % 38 37 46 34 38 38 42

EBITDA before special items 78 68 35 81 62 52 40

EBITDA margin before special items, % 19.6 16.9 10.2 20.2 16.4 15.5 14.9

Depreciation 11 11 12 11 12 11 9

Amortisation 12 10 7 11 11 5 4

EBIT before special items 55 47 16 59 39 36 27

EBIT margin before special items, % 13.9 11.7 4.7 14.7 10.3 10.7 10.0

Working capital relative to revenue, % 27 26 26 28 32 36 35

Assets 1,974 1,925 1,886 1,875 1,935 1,986 963

Equity 701 663 632 651 651 652 642

Cash flows from operating activities 53 37 20 57 27 44 -6

Cash flows from investing activities before acquisitions -25 -11 -17 -13 -17 -17 -7

Free cash flows before company acquisitions 28 26 3 44 10 27 -13

Payment of speciel items -2 -4 -4 -15 -19 -1 0

Net interest-bearing debt 784 729 732 721 767 781 97

NIBD/EBITDA before special items 3.0 3.0 3.2 3.1 3.6 3.9 0.5

Date post:	22-Mar-2020
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Interim report for Q3 2013/14 (1 April - 30 June) · Company announcement no. 13 2013/14 20 August...

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